How car dealers can navigate upcoming regulatory changes in FTC safeguard rules

These will take effect on June 9, 2023, and are intended to protect consumers against hidden fees and costs.

Recent regulatory changes in FTC safeguard rules are top of mind for many dealers, but there are other emerging risks to prepare for. Today on Inside Automotive, we discuss those risks and more with Vince Santivasi, Head of Direct Markets at Zurich North America. 

Zurich works closely with auto dealers and provides several manufacturers with coverage for server loan vehicles, floor plans, and even rental car firms as one of the biggest and most seasoned commercial insurance providers. Dealers informed Zurich, according to Santivasi, “our size and scope ensure added value to the products and services our company delivers.”

With more than 56,000 employees worldwide, the company’s financial stability, local footprint, and history of service are its key differentiators. The primary determinants of Zurich’s success, particularly with auto dealers, are the quality and added value of the services they perform. Ultimately, he continues, “it comes down to people: other rivals don’t have enough employees to serve everyone, and they don’t have the quality of people.”

Zurich intends to assemble 200+ of its salespeople at NADA to share insight on how to handle current problems. Such as any questions, concerns, anticipated trends, and opinions on the direction they believe the industry will go.

Santivasi says that there are two significant difficulties the auto industry is facing. The first is a new regulation change suggested by the FTC, and the second is a new safeguard ruling. This will take effect on June 9, 2023, and is intended to protect consumers against hidden fees and costs. Zurich made it its goal to be able to use knowledge of the regulatory environment and growth to give compliance tools to assist dealers. By managing these changes, it offers protection to businesses against these new regulations. 

The FTC safeguard rules, according to Santivasi, were implemented because dealers have been a primary target for cyberattacks. According to a recent report, 15% of dealers have experienced breaches in the last 12 months. As a result, 84% of consumers acknowledged that they would not buy from those dealers.

Santivasi believes that Zurich has seen several breaches in a variety of industries. But with Zurich’s assistance, it will be possible for dealers to have access to these kinds of resources. Visit Zurich’s booth, #3033, at NADA in Dallas for more details.

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